November 1, 2010

Today Acorda Therapeutics (ACOR) reported earnings. Acorda stock has risen on hopes for blockbuster sales of its MS walking drug Ampyra. First the stock went higher,  but started falling when investors realized that sales will drop next quarter. Our negative stance on Ampyra sales has proven right. Earlier in the year, when  Wall Street was unanimously wildly bullish on Acorda, we wrote the following:

In the short term, the bulls may be right. For the first time, MS patients with difficulty in walking have hope. MS patients, in general tend to be very knowledgeable about new drugs and as such they are likely to demand that neurologists prescribe Ampyra.